In 2009, the Interest Rate Fell Below 1 Percent in the United

question 166

Multiple Choice

In 2009, the interest rate fell below 1 percent in the United States.As a result, there was a

• A) leftward shift in the supply of money curve.
• B) rightward shift in the demand for money curve.
• C) movement downward along the demand for money curve.
• D) movement upward along the demand for money curve.
• E) movement upward along the money supply curve.

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Definitions:

Financial Position

The status of the assets, liabilities, and equity of an entity as detailed in the balance sheet, indicating the entity’s economic resources and obligations at a given time.

AASB 101

The Australian Accounting Standards Board guideline concerning the presentation of financial statements.

Corporations Act

A major legislation regulating corporate entities in some jurisdictions, detailing rules on incorporation, management, shareholders, and financial reporting.

Operating Cycles

The period of time it takes for a company to purchase inventory, sell it, and convert the sale into cash.